The latest update on the Tauranga market is here and we cover: house prices, rising interest rates, the impact of the upcoming election and more.

As always, you can watch the video or if you prefer, read the article. Graphs are also included below.

Current market conditions

127 Tauranga homes sold in March. This is a continuation of the solid trend we’ve seen for a number of months now.

30% of sales were between $300,000 and $400,000.

20% of sales were between $400,000 and $500,000.

The price ranges are returning to normal as we see the effect of the loan to value ratio rules wearing off a little bit.

The assumption that we hear is that the dramatic price rises from Auckland will flow on to other parts of the country. However, so far Tauranga prices have not really moved up.

Reserve bank

Some banks are loosening up on their LVR rules. The effect of this is I expect more first home owners to be buying. When the lower price ranges start moving then you see a flow on effect as people move up the price ladder.

Buyers and sellers

We’re still seeing more buyers than sellers on the market. So it continues to be a good time to sell. Buyers need to be decisive in this type of market.

The number of new building consents in Tauranga is well up from 2012. This indicates a lot of sections are being sold. As the shortage of homes for sale continues it would seem people are turning to the new build option.

The election

The election, like any change, tends to cause people to sit back and watch what’s happening. For this reason it’s a good idea to make a move now if you’re thinking of selling. That way you take the effect of the election out of the picture.

As far as the actual effect of the election, I don’t expect the outcome to impact the market in any serious way.